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Question

The cause of downfall of share market was

A
Inexperienced investors
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B
Phenomenal decrease
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C
Lack of confidence in stock market’s ability
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D
Panic amongst investors.
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Solution

The correct option is C Lack of confidence in stock market’s ability

The answer is C. The passage starts off saying that traders experienced a lack of confidence in the stock market’s ability to continue its phenomenal rise which leads to a fall in prices. Hence C is the best option.D is wrong as panic was the result of fall in prices.


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